To Forestall Seizure, Some Banks Turn to Bankruptcy

By

Katy Stech

Aug. 16, 2012 3:05 p.m. ET

Eying bank regulators who could take over its chain of Tallahassee, Fla., banks at any time, Premier Bank Holding Co. filed for bankruptcy protection earlier this week after losses piled up for four years as recession-stung customers struggled to repay their loans.

The Chapter 11-facilitated sale of its only asset—its seven-branch Premier Bank unit—could bring in money for the bank holding company's estate that would otherwise be lost of the Federal Deposit Insurance Corp. took over the bank and sold it itself. Home...